The Sinking City is at the center of the scandal: chronology of the conflict between Frogwares and Nacon

Contents:

• Re-disappearing

During development, Nacon systematically delayed payment of royalties, exceeding the deadline by more than 40 days. Frogwares claims that all results of the development stages were transferred to the licensee on time. In its blog, the developer emphasized that it repeatedly had to go to court to collect the funds owed.

Nacon's failure to fulfill its financial obligations has become a constant source of stress for us. The publisher acquired our competitor's studio, which was working on a game set in the Lovecraft universe, and then demanded the source code for The Sinking City. We refused this demand, which resulted in us not receiving the necessary funding for the next four months.

Frogwares regularly shares news and updates about its games on its official blog. Known for high-quality projects such as the Sherlock Holmes series, the developer offers readers a unique insight into the game creation process and discusses its plans for the future. The blog features information about new releases, updates, and special events, as well as interviews with team members. Frogwares strives to create a community where players can discuss their experiences and get up-to-date information about their favorite games. Stay tuned to the official Frogwares blog to stay up-to-date with all the latest gaming news and events.

The developer reported that it has repeatedly requested a business plan and sales forecasts from the publisher. However, the data provided by Nacon does not reflect reality.

On June 27, 2019, The Sinking City was released on Xbox One, PS4, and the Epic Games Store. On the day of release, the publisher notified Frogwares that it was terminating all previously agreed-upon terms, depriving the developers of any revenue from sales. This decision became a critical moment for the team that created The Sinking City.

In August 2019, Frogwares filed a lawsuit against Nacon. From that moment on, the developer began to receive financial reports, although they were incomplete. This legal step marked an important stage in the relationship between the companies and opened up new opportunities for further cooperation.

Publisher Frogwares draws attention to a number of violations that have been committed. Among them, the following key aspects can be highlighted:

• Removing the developer's logo from the covers of the game for PS4 and Xbox One.
• Registering domain names under the studio's brands (Sherlock Holmes and The Sinking City) without prior agreement.
• Creating the board game The Sinking City and selling it without the knowledge of the Ukrainian studio.
• Attempts to release a pirated version of the game on a third-party game platform.
• Nacon falsely reported to Frogwares about a five-month royalty delay from one of the console manufacturers.
• Nacon completely stopped paying royalties; the publisher's debt to the developer is over one million euros.

Frogwares decided to terminate the contract with Nacon on April 20, 2020, given the current circumstances. However, the publisher disagreed with this decision, citing French legislation protecting businesses during the COVID-19 pandemic, and ceased fulfilling its obligations to the developer. As a result, the contract was terminated on July 17, 2020. Despite the publisher's attempts to challenge this decision, a French court upheld Frogwares's claim.

Frogwares has decided to remove The Sinking City from a number of online stores. The only exceptions are those platforms with which the developer has a direct contract, without the involvement of Nacon. These stores include Origin, Gamesplanet, and the Nintendo eShop. This decision is due to legal issues and conflicts that have arisen between Frogwares and Nacon.

Under the contract with the developer, the publisher received the rights and obligations to distribute the game on various platforms, including Steam. However, the developer claims that the publisher did not fulfill its royalty obligations in good faith. This dispute has already entered the legal stage, as a result of which a French court ruled that the publisher retains the right to distribute an interim version of the game. This also implies that the publisher has the right to profit from sales of this version. Based on this decision, Nacon contacted Valve and made the game available on the platform.

According to the principles of the contractual relationship between the publisher and the developer, Nacon is not exempt from paying royalties to Frogwares. The game, even in its intermediate version, is the result of the developer's intellectual property, meaning Frogwares retains exclusive rights. Nacon has the right to distribute this version, but nothing more.

Rostislav Melikov is a professional with extensive experience and deep knowledge in his field. He has proven himself to be an expert capable of solving complex problems and achieving high results. Thanks to his approach to work and attention to detail, Rostislav is able to effectively manage projects and achieve goals. His skills and knowledge make him a valuable resource for any team.

A lawyer at the Skillbox group of companies protects the rights and interests of clients, offering qualified legal services in various areas of law. The specialist assists in resolving legal issues related to business, contracts, labor relations, and other aspects of the company's activities. Possessing in-depth knowledge of the law, the Skillbox lawyer provides consultations and represents clients in court, providing reliable legal support for the successful conduct of business.

Repeated Disappearance

Frogwares expressed dissatisfaction with the sale of a "pirated version" of its game on Steam. To remove it from the platform, the company used the DMCA copyright law.

The DMCA (Digital Millennium Copyright Act) is a copyright law in the digital era that is primarily applicable to American companies, as it was adopted in the United States. Valve, the owner of the Steam platform, is an American company. It's no surprise, then, that Frogwares emphasizes the DMCA in their communications. This law provides the ability to protect copyright online and provides legal mechanisms to combat infringement. Rostislav Melikov is a distinguished figure who has made significant contributions to his field. His work is characterized by a high level of professionalism and dedication. Melikov is actively involved in various projects aimed at developing and implementing innovative solutions. His expertise covers a wide range of topics, and he constantly strives to expand his knowledge and skills. Rostislav Melikov has established himself as a reliable partner and specialist, willing to share his experience and help others achieve success. A lawyer at the Skillbox group of companies provides professional legal services, ensuring the protection of clients' interests in various fields. His specialization includes consultations on civil, commercial, and labor law. The Skillbox legal team provides high-quality legal support and develops strategies for the effective resolution of legal issues. By contacting a lawyer from the Skillbox group of companies, clients receive reliable support and confidence in the legal aspects of their activities.

Filing a complaint about the illegal distribution of content is an effective mechanism for copyright holders to protect their rights in the digital environment without the need for litigation. It's important to note that providing false information in such complaints can result in significant fines for those filing them. This protects bona fide content distributors, ensuring fairness in copyright matters.

To understand the reasons for such a swift removal of the game, it's necessary to look at the developers' statements. They claim that the version of the game submitted by Nacon was not approved by the publisher. This indicates that Nacon used a modified version without obtaining the copyright holder's consent, which violates US law. Therefore, it can be concluded that Frogwares remains the copyright holder of the version of the game available on Steam. Furthermore, it's worth noting that Nacon's counter-complaint for restoration of rights to the game was not registered, and no compelling evidence was presented in its defense.

Rostislav Melikov is a name that has become a symbol of professionalism and success in his field. He is known for his achievements and contribution to the development of the industry. Rostislav Melikov is actively involved in various projects, demonstrating a high level of expertise and responsibility. His approach to work is based on in-depth analysis and strategic thinking, which allows him to achieve impressive results. Thanks to his skills and experience, Rostislav Melikov has earned the respect of colleagues and partners and has become a source of inspiration for many.

As a lawyer for the Skillbox group of companies, he provides qualified legal services, protecting clients' interests in various legal matters. His specialization covers a wide range of areas, including corporate law, labor disputes, and intellectual property protection. This experienced Skillbox lawyer assists in the drafting and review of contracts and advises on legal matters related to business activities. Contacting a lawyer from the Skillbox group of companies guarantees a professional approach and high-quality service, which facilitates the successful resolution of legal issues and minimizes business risks.

Melikov notes that Valve most likely requested confirmation of the publisher's rights to distribute a specific version of the game. In turn, Nacon was unable to provide the necessary evidence that meets the requirements of American law.

It is important to note that Valve took these measures primarily to protect its reputation and prevent potential litigation.